Wow, good info. I use a ceiling mounted reel for connecting to my router and sander all the time, and will need to check into whether it's an issue... I like only having a little bit of cord out when only a little bit is needed, but I also like being a fire-free space.
Also, to the OP, glad things ended up ok in your case. Scary stuff and a great reminder. I too use the "lay out flat on concrete" method as that was how I was taught during woodworking class many years ago.